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Financial News USA
May 17


Previewing Earnings for Groupon, LinkedIn, Cisco, Akamai & Others and The Solid State of SanDisk
News - Financial News
Stocks tend to be most volatile around earnings season, when a good or bad report can make or break it. [Read the full article]

SanDisk (Nasdaq: SNDK - News) posted healthy revenue of $1.6 billion for the fourth quarter of 2011. However, the company forecast $1.3 to $1.35 billion in revenue for the first quarter, below the $1.46 billion expected by analysts. This resulted in the stock price tanking by 10%.I still think the market has overreacted to the guidance and the stock makes for a good buying opportunity. Let me tell you why.Solid business modelSanDisk's efficient business model is reflected in the steady revenue growth it has been able to sustain over the last eight quarters. In addition, the company has been able to deliver more than 25% in operating margins over the past ten quarters.SanDisk has diversified its operations by acquiring a number of clients and entering the highly profitable enterprise SSD market through its acquisition of Pliant Technology. [Read the full article]

Coinstar's wholly owned subsidiary Redbox has now set its eyes on acquiring NCR Corporation's DVD rental business in a deal worth around $100 million. This acquisition, which is expected to be complete by the third quarter of this year, will give Coinstar access to NCR's 10,000 DVD rental kiosks, providing fuel for its top-line growth.Netflix killer?But that's not the end as far as its expansionary moves are concerned. Redbox, which has already eaten into its arch-rival Netflix's (Nasdaq: NFLX - News) share, is now preparing another challenge for the online video streaming giant. This time it has found an ally in Verizon (NYSE: VZ - News), through offering online video services to customers along with its existing rental services from kiosks. Reports suggest that Verizon will have a 65% share in this venture, which is being touted as a Netflix killer and goes online in the later half of the year. [Read the full article]

Silicon Motion Technology Corp.(TM)s (NasdaqGS:SIMO - News) share price has entered into oversold territory with a stochastic value of 16.230. The Zacks Consensus Estimate on the company(TM)s earnings for year ending December 2012 increased by 17 cents over the past week to $1.40 per share. Silicon Motion Technology Corp is a Zacks #1 Rank (Strong Buy) company. [Read the full article]
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